Ruci Please answer these questions for my assignment week 3.

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P4-47A. (Learning Objectives 2, 4: Explain the objectives and components Ofinternal control; evaluate internal controls) Each of the following situations reveals an internal control weakness: a. In evaluating the internal control over cash payments of Judd Manufacturing, an learns that the purchasing agent is responsible for purchasing diamonds for use in company's manufacturing process, approving the invoices for payment, and signing checks. No supervisor reviews the purchasing agent's work. b. Krysta Pesarchick owns an architectural firm. Pesarchick's staff consists of 16 architects, and Pesarchick manages the office. Often, Pesarchick's work requires her to travel to meet with clients. During the past six months, Pesarchick has observed that when she returns from a business trip, the architecture jobs in the office have not progressed satisfactorily. Pesarchick learns that when she is away, two of her senior architects take office management and neglect their normal duties. One employee could manage the office c. Ian Holt has been an employee of the city of Streetsboro for many years. Because the city is small, Holt performs all accounting duties, in addition to opening the mail, preparing the bank deposit, and preparing the bank reconciliation. Requirements 1. Identify the missing internal control characteristic in each situations 2. Identify each firm's possible problem. 3. Propose a solution to the problem. P4-48A Additional data for the bank reconciliation include the followtng. a. The EFF deposit was a receipt of monthly rent. The EFT debit was a monthly insurance payment. b. The unauthorized signature check was received from a customer and returned by the bank unpaid. c. The correct amount of check number 31 15, a payment on account, is $1,380. (Dunlap Automotive's accountant mistakenly recorded the check as $ 1,830.) Requirements I. Prepare the Dunlap Automotive bank reconciliation at June 30, 2016. 2. Prepare the journal entries required at June 30, 2016. 3. Describe how a bank account and the bank reconciliation help the general manager control Dunlap Automotive's cash. P5-55A. (Learning Objectives 2, 3, 4, 5: Apply GAAPfor revenue, receivables, collections, and uncollectibles using the percentof-sales method; account for notes receivable) This problem takes you through the accounting for sales, receivables, uncollectibles, and notes receivable for Bates Delivery Corp., the overnight shipper. By selling on credit, the company cannot expect to collect 100% of its accounts receivable. At October 31, 2016, and 2017, respectively, Bates Delivery Corp. reported the following on its balance sheet (in millions of dollars): During the year ended October 31, 2017, Bates Delivery Corp. earned service revenue and collected cash from customers. Assume uncollectible-account expense for the year was of service revenue on account and that Bates Delivery wrote off uncollectible receivables and made other adjustments as necessary (see below). At year-end, Bates Delivery ended with the foregoing October 3 1, 2017, balances. Requirements l. Prepare T-accounts for Accounts Receivable and Allowance for Uncollectible Accounts, and insert the October 31, 2016, balances as given. 2. Journalize the following transactions of Bates Delivery Corp. for the year ended October 31. 2017 (explanations are not required): a. Service revenue was $32,900 million, of which 7% is cash and the remainder is on account. b. Collections from customers on account were $28,860 million. c. Uncollectible-account expense was 4% of service revenue on account. d. Write-offs of uncollectible accounts receivable were $l ,294 million. e. On October l , Bates Delivery received a 2-month, 7%, $185 million note receivable from a large corporate customer in exchange for the customer's past due account; Bate Delivery made the proper year-end adjusting entry for the interest on this note. f. Bates Delivery's October 31, 2017, year-end bank statement reported S42 million of NSF checks from customers. 3. Post your entries to the Accounts Receivable and the Allowance for Uncollectible Accounts T-accounts. 4. Compute the ending balances for Accounts Receivable and the Allowance for Uncollectible Accounts and compare your balances to the actual October 31 , 2017, amounts. They should be the same. How much does Bates Delivery expect to collect from its customers after October 31, 2017? 5. Show the net effect of these transactions on Bates Delivery's net income for the year ended October 31, 2017. P5-57A. (Learning Objectives 1, 4, 7: Apply GAMfor short-term investments and uncollectible receivables; evaluate liquidity through ratios) Assume Williams & Sellers, the accounting firm, advises Ocean Mist Seafood that its financial statements must be changed to conform to GAAP. At December 31, 2016, Ocean Mist's accounts include the following: Cash.$50,000 Investment in trading securities, at cost ........ Accounts receivable........... Inventory... .. 26,000 42,000 62,000 1 1,000 The accounting firm advised Ocean Mist of the following: Cash includes $18,000 that is deposited in a compensating balance account that is tied up until 2018. u The market value of the trading securities is $17,000. Ocean Mist purchased the investments a couple of weeks ago. n Ocean Mist has been using the direct write-off method to account for uncollectible receivables. During 2016, Ocean Mist wrote off bad receivables of S4,()()0. The aging of Ocean Mist's receivables at year-end indicated uncollectibles of S26,500. Ocean Mist repofied net income of $94,000 in 2016. Requirements 1. Restate Ocean Mist's current accounts to conform to GAAP. (Challenge) 2. Compute Ocean Mist's current ratio and quick (acid-test) ratio both before and after your corrections. 3. Determine Ocean Mist's correct net income for 2016. (Challenge) October 3 1 , 2017 2016 During the year ended October 31, 2017, Bates Delivery Corp. earned service revenue and collected cash from customers. Assume uncollectible-account expense for the year was of service revenue on account and that Bates Delivery wrote off uncollectible receivables and made other adjustments as necessary (see below). At year-end, Bates Delivery ended with the foregoing October 3 1, 2017, balances. Requirements l. Prepare T-accounts for Accounts Receivable and Allowance for Uncollectible Accounts, and insert the October 31, 2016, balances as given. 2. Journalize the following transactions of Bates Delivery Corp. for the year ended October 31. 2017 (explanations are not required): a. Service revenue was $32,900 million, of which 7% is cash and the remainder is on account. b. Collections from customers on account were $28,860 million. c. Uncollectible-account expense was 4% of service revenue on account. d. Write-offs of uncollectible accounts receivable were Sl ,294 million. e. On October l , Bates Delivery received a 2-month, 7%, $185 million note receivable from a large corporate customer in exchange for the customer's past due account; Bate Delivery made the proper year-end adjusting entry for the interest on this note. f. Bates Delivery's October 31, 2017, year-end bank statement reported S42 million of NSF checks from customers. 30 Post your entries to the Accounts Receivable and the Allowance for Uncollectible Accounts T-accounts. 4 Compute the ending balances for Accounts Receivable and the Allowance for Uncollectible Accounts and compare your balances to the actual October 31 , 2017, amounts. They should be the same. How much does Bates Delivery expect to collect from its customers after October 31, 2017? Show the net effect of these transactions on Bates Delivery's net income for the year ended October 31, 2017